Power Metals Corp. - PWM / PWRMF, NAM Update

 

We mentioned our holding a position in Power MetalsCorp. - ticker PGM in Canada and PWRMF in the U.S. - in early November 2018 when it traded at $0.23 

 

It's since gone as high as $0.53 and is now at $0.39 and looking like it'll break a major down trend:

We remain bullish on Power Metals Corp.

 

It's at a reasonable entry point in our estimation, in a hot sector with the potential to apprecaite considerably in the coming days or weeks if the general stock mania currently in evidence persists.

 

We don't suggest a stop at this time. 

 

 

An update on our position in New Age Metals (ticker NAM in Canada and NMTLF in the U.S.) - was posted January 14.   

 

It was at $0.09 CAD and we wrote that "if it hits the high teens, we're likely to sell at least half and if so we'll post an update to that effect."

 

Within a week it went as much as 77% higher, to $0.16, however our full position remains intact. 

 

Now back down to $0.11 it's run may be over, or it may be consolidating before another move much higher.

 

If it does approach $0.20 again, we still plan to sell at least half.

   

 



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Closing LTHM, Adding UVXY, NAM Update

 

We bought LTHM in August 2019, selling 2/3 almost three months ago for a gain of 149% on that portion.

 

Now we're closing the remaining 1/3 LTHM which finished today up 250% from our entry.

We'll add a 3rd UVXY position once it trades back above $10.80

 

It ended the session today at $10.58

 

No stop on UVXY positions.

 

These caveats still apply, written when we last bought UVXY in November:  

"Don't go too big on UVXY.  The world, and its markets, is unusually volatile.  As compelling as the short case is, it can certainly become more compelling.  If so, we'll go heavier on the short side at that time."

 

That time has come and now it seems almost irresponsible not to be short the overall market.

 

 

Investing legend Jeremy Grantham describes the current situation very well.

 

Click here to read Grantham's recent "Waiting for the Last Dance".

 

 

In our November 21 2020 post, linked above and here again, we announced entering New Age Metals which trades under ticker NAM in Canada and NMTLF in the U.S.

At that time it had last traded at $0.07 CAD and we noted it "looks to be in the process of breaking a down trend stretching back to January of this year."

 

The chart we presented showed the stock spiked higher at the start of each of the past 5 years, several times spiking very significantly higher.  

 

Here's that chart again:

Here's what we noted at the time:

 

"The blue circles show that near, or just after, the end of each of the past 5 years this stock shot higher.  Same situation now?

"The red lines show down trends broken.  Same situation now?

"Green shows that this stock is also in a year-long pennant formation, which in this case should resolve higher.

"The black lines show that downside is limited while above roughly $0.12 there's technical potential for it to skyrocket after breaking a 5-year down trend."

Here's what the chart looks like to us today, with the stock now 50% higher:

 

 

While we don't expect the mania in the so-called "clean" energy sector to run much higher, of course anything's possible in an all-out buying panic so with fingers crossed we'll keep holding New Age Metals.

 

If it hits the high teens, we're likely to sell at least half and if so we'll post an update to that effect.

 

Click here to visit the New Age Metals website.

 

 

 



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Selling 2/3 LTHM

 

Ref: this post from August 2019: "Buying LTHM".

 

Now, nearly 15 months later, electric vehicles are in a frothing mania, with even some total scam stocks in the sector going parabolic so it's likely near the end of this mania.  

 

Stocks in general are extremely overvalued. 

 

LTHM (Livent Corp.), which closed today at $15.43, is up 149% from our entry and we're booking the profit on 2/3 of the position which makes the rest of it essentially free of cost.

We'll ride the rest of it for the longer term, or as long as we can stand to maintain any long exposure if overall markets continue to skyrocket.

 

 

 

 



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Buying More UVXY, and NAM. Updates on GNG, FG, GLI and IMT. "The Greatest Bubble Of All Time".

 

We last bought UVXY in July and it's down 50% since then.

 

That turned out to be a bad call ... so far... however long-time readers know we're not wrong often and even less so in succession.  

 

Don't go too big on UVXY.  The world, and its markets, is unusually volatile.  As compelling as the short case is, it can certainly become more compelling.  If so, we'll go heavier on the short side at that time.

Buying UVXY Monday, which closed last at $12.53

No stop. 

UVXY is the ProShares Ultra VIX Short-Term Futures ETF.

Click here to read about it.

 

 

We're way behind on updating positions, some of which you've probably taken at least some profits on.  Eventually, we'll catch-up.

 

On June 20, we wrote of Golden Goliath: "For those wishing to speculate, adding above $0.10 and if need be then selling below $0.07 should present a reasonable risk/reward ratio given the tremendous upside potential." 

 

It crossed above $0.10 the next trading day and hit a high of $0.375 not three months later, rising 275% since that post and up 971% from when we first suggested it in October 2018.

 

It closed last week at $0.175 and "should" go higher still if or when gold and silver move much higher.

On May 19 of this year we wrote in bold that Falcon Gold "currently at $0.065, still looks very much worth accumulating to us, for those longer-term bullish on the precious metals sector."

10 weeks later FG (Falcon Gold) was 285% higher.  It closed last at $0.12 and "should" go higher still if or when gold and silver move much higher.

 

 

See that May 19 link above for what we wrote on GLI (Glacier Lake Resources).  Our view of it, like its share price, remains the same.

 

 

More recently, on June 25 we pondered "Is IMT Next?"

6 weeks later IMT was 133% higher, up 250% since we added to our position in April.

It last closed at $0.06 and "should" go higher still if or when gold and silver move much higher.

In August "energy metal" stocks began to rally big.  Lithium, cobalt and the like.  

 

Here's one related stock that hasn't rocketed higher ... yet?

New Age Metals trades under ticker NAM in Canada and NMTLF in the U.S.

It last traded at $0.07 CAD and looks to be in the process of breaking a down trend stretching back to January of this year.

We'll track the Canadian issue of New Age Metals, since that's where the company is based.

 

No stop on this position.

Click here to visit the New Age Metals website.

Here's its chart:

The blue circles show that near, or just after, the end of each of the past 5 years this stock shot higher.  Same situation now?

The red lines show down trends broken.  Same situation now?

Green shows that this stock is also in a year-long pennant formation, which in this case should resolve higher.

The black lines show that downside is limited while above roughly $0.12 there's technical potential for it to skyrocket after breaking a 5-year down trend.

Obviously, like all penny stocks ... like all stocks ... New Age Metals is a speculation, and as seen below arguably markets overall are overdue to tank so proceed with prudence.

 

Charles Hugh Smith writes on the G.B.O.A.T. - "The Greatest Bubble of All Time"

 

 

Worth considering:

 

 

 

 



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Buying UVXY

The time for stocks to roll over is upon us, or will be very soon in our estimation.

Buying UVXY in the morning, which closed today at $26.30

No stop.

UVXY is the ProShares Ultra VIX Short-Term Futures ETF.

Click here to read all about it.



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Selling LL (Lumber Liquidators) +64% in 3 Months

We bought Lumber Liquidators (LL) on the 11th of March and on the 16th of that month.

In hindsight the entry on the 11th was a bit early, though it's now up 64%.

The timing on the 16th was perfect, as the stock hit its all-time low that morning and is now up 233% in 2.5 months.

However we sold if for "only" a gain of 43% in a month, back in April.

No regrets though, since we've still that 1st position to sell.

While when buying it we'd written that we believed it to be "a long-term value play", a tremendous amount has happened in the world and in stock markets since then.

Monday we'll sell the 1st LL position and book that considerable increase in value rather than hold it any longer.  
 



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IMT Next?

Penny stocks have started to take-off, and we're benefitting tremendously thus far.

Recent examples include:

May 19 Update FG (Falcon Gold) up 54% since.

June 20 Golden Goliath (GNG) up 66% the next day.


Is IMT next?

We most recently wrote about it when we added to our position on April 17. 

It's already doubled since then, and given its low float and exposure to several currently hot sectors (see post linked above), it could have a long way to run.

If you're going to buy or add International Montero, trading in Canada under ticker IMT and in the States under ticker IMTFF, do so while it's still below $0.05 and consider it a call option that'll never expire.

 



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Golden Goliath Resources (GNG)

Golden Goliath Resources was featured in this blog in late October of 2018 when it was trading at $0.035

This week it closed at $0.09

Its chart:

The descending red line depicts a 4-year down trend, likely soon to be broken (blue circle) and the green is an up trend.

The horizontal black line shows established resistance at the key level of $0.10

We're still holding our position without a stop in mind. 

For those wishing to speculate, adding above $0.10 and if need be then selling below $0.07 should present a reasonable risk/reward ratio given the tremendous upside potential.

 



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Update: FG (Falcon Gold), GLI (Glacier Lake Resources)

In January of 2019 we listed FG and GLI as "two penny stocks worth accumulating".

Falcon Gold, trading under ticker FG in Canada and 3FA in Frankfurt, has since more than doubled, while Glacier Lake, trading under ticker GLI in Canada, has languished.

FG, currently at $0.065, still looks very much worth accumulating to us, for those longer-term bullish on the precious metals sector.

Falcon Gold website.


Since we noted it, GLI underwent two share consolidations which make for an exceptionally low float at the moment.  It last traded at $0.105

However they did issue an exponentially higher amount of shares in a private placement earlier this year. 

We speculate that those shares are tightly held, and that the share price could easily be driven higher on promotional efforts or due to a miracle of actually discovering ore in the ground.



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Selling ACB +149% in 2 months

We opened a position in ACB exactly 2 months ago at $7.44 on a split-adjusted basis. 

(ACB underwent a 12:1 consolidation last week)

It's now above $18.50, and we're selling for a gain of nearly 150% in 2 months.



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